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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: May 22, 2017 12:33 PM
From: Representative William C. Kortz, II
To: All House members
Subject: Charitable gaming legislation allowing for a local referendum to permit video gaming terminals at nonprofit organizations

In the near future, I plan to introduce legislation that would amend Title 4 (Amusements) to allow municipalities the option of placing a referendum on the ballot which would authorize up to three video gaming terminals (VGTs) in licensed establishments that are legally designated as “nonprofit clubs” and have a valid liquor license, such as American Legions, VFWs and volunteer fire departments, etc.

Terminals in a licensed establishment would have to be located in a segregated gaming area from which persons younger than 21 years of age would be prohibited. Further, each terminal must be designed to verify a person’s age prior to play.

The tax rate on the gross revenue from each terminal would be 50% and there would be an annual municipal share assessment of $1,000 per terminal. The legislation also provides for an additional fee per terminal for each terminal located in a city of the first class to fund the City of the First Class Nuisance Bar Task Force. The municipal share would be distributed to host municipalities at a rate of $1,000 per terminal located in the municipality. Licensed establishments would be entitled to a minimum of 25% of the gross revenue from the machines operating on their premises.

The legislation has been drafted as a pilot program set to expire on June, 30, 2021. I believe this four-year time frame will allow members of the General Assembly an adequate amount of time to evaluate the result of the implementation of VGTs in these select clubs to determine if there is any financial effect on the casino industry in the Commonwealth. Additionally, after two years of implementation, the Gaming Control Board is required to submit a report to the General Assembly on the impact of video gaming on the casino industry.

Please join me in co-sponsoring this legislation that is designed to provide a much needed revenue source for our local nonprofit clubs and their host municipalities.

Introduced as HB1796